Case
ORANGI CHARITABLE TRUST
INDUSTRY :N G O MANAGEMENT
AREA :HUMAN RESOURCE MANAGEMENT/ORGANIZATIONAL BEHAVIOUR
ORGANIZATION :Orangi Charitable Trust
LENGTH :17
LUMS No :05-721-2005-1
PUBLICATION YEAR : 2005
ABSTRACT:
In PPMarch 1993, Dr Anwar Rashid, Director Orangi Charitable Trust (OCT), was going over a review of the strengths and weaknesses of the organization’s performance over the period 1987-1992. In 1992 OCT had started distributing loans through agents who were paid Rs 1,000 per month. This strategy was cost effective and it helped in scaling up OCT’s operations throughout Orangi. In 1993, when the OCT management decided to evaluate the program, several weaknesses in the loan processing system were discovered that could threaten the existence of any micro-credit program. Though OCT had increased its client base, the default rate had almost doubled. Anwar was wondering how he could solve organizational structure issues, without increasing overheads.